Cîroc needs a new strategy
Steve’s breakdown: Sean Combs, the NBA and more flavors are not the be-all-end-all. At least that’s what Diego’s CEO seems to think. That makes this a good time to make that call.
NEW YORK, NY: Diego’s super-premium French import Cîroc encountered a dramatic fall in the U.S. in 2015, slipping 19% to 1.6 million cases after years of torrid growth. But the decline was largely due to the company’s decision to reduce shipments of new products, such as Cîroc Apple, under a new “replenishment model” that focuses on depletions rather than shipments.
In the first six months of this year, Cîroc’s sales leapt by 95%, with Cîroc Apple providing a boost. Still, Diageo CEO Ivan Menezes wants Cîroc to become less flavor-focused. “The key issue for Cîroc in the U.S. is to stabilize the core and get less dependent on big flavors,” Menezes recently told analysts, adding that he’s eyeing “more disruptive” innovation rather than straight line extensions. “We’re out to broaden the franchise beyond the urban market. I expect in fiscal ’17 we’ll do better overall on Cîroc in the U.S.”
Source: Shanken News Daily